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* Corporacion Andina de Fomento (CAF) launched a $300m 10 year Yankee bond issue on Wednesday via sole lead manager Merrill Lynch, which was oversubscribed despite an increase from $250m. Three quarters of the deal was placed in the US but the inclusion of an unusual Luxembourg listing paid off handsomely, said a Merrill Lynch syndicate official, with 25% of the bond going to European investors.

BNP Paribas and Dresdner Kleinwort Wasserstein are understood to have underwritten about Eu3.5bn of debt supporting Lafarge's cash bid for UK cement company Blue Circle. The size of the loan to be syndicated is still unclear but it is understood that the borrower plans to make a rights issue of about Eu1bn (see equity capital markets pages). The amount of the loan depends on the amount raised in the issue.

Three landesbanks and World Bank have lapped up 20-year-and-over yen-trades. Bayerische Landesbank Girozentrale did three 20-year deals ranging from $4.51 million to $12.35 million. All were power reverse duals. Vorarlberger Landes- und Hypothekenbank did an almost identical trade, and Hamburgische Landesbank Finance did a ¥500 million structured note via Credit Lyonnais. The trade was a reverse step-up floater that pays a coupon of 3.25% minus 6m yen Libor. The fixed part of the coupon steps up by 0.5% each year for the first five years, and from then on goes up by 0.3%. It also has a call attached, available after one year and semi-annually thereafter. Brigitte Wuenniker, EMTN desk at the issuer, says: "It was a difficult year last year, and I think spreads will continue to widen this year. But we are still getting a lot of business done." And World Bank did two yen trades: a 25-year ¥1 billion ($8.58 million) that pays a final coupon of 9%, and a 30-year ¥3 billion trade that pays a final coupon of 8.5%.

The rupiah has made its first appearance in 2001 care of UBS (Jersey) and Sparc, an SPV arranged by UBS Warburg. The Indonesian currency was used on 47 occasions in 2000, making it more popular than Canadian dollar, New Zealand dollar and Finnish Markka all put together. The two rupiah trades, both of which have an issue date of January 19 2000, mature in January 2002. Sparc's note has a 367-days tenor, UBS' has a 368-days tenor. Both trades are for Rp280 billion ($38.1 million). UBS' is an FRN that pays 17% on a quarterly basis. The Sparc trade pays a final coupon of 17% as well.

Metro has increased and redenominated the debt ceiling of its Dm2 billion ($966.6 million) debt issuance programme to euro3 billion($2.84 billion). Metro Capital has been dropped as an issuer. Dresdner Bank has replaced Commerzbank and Morgan Stanley Dean Witter as arranger. Merrill Lynch, Westdeutsche Landesbank and HSBC have been dropped as dealers, while ABN Amro has been added as a dealer.

The United Mexican States successfully completed its stated funding requirements for 2001 in a single stroke, with a swiftly executed $1.5bn global launched on Monday through Goldman Sachs and JP Morgan. The offering pays an 8.375% coupon with an issue/reoffer price of 98.12, giving a spread over of 374bp over Treasuries.

Turkey The refinancing for Türkiye Garanti Bankasi's Eu400m 364 day facility from last year will be launched in the next two weeks. The 12 arrangers in the 2000 facility and some additional banks have been approached by the borrower to lead the deal. However, at this stage no names or figures have been confirmed.

* Rafael Martinez, one of Europe's best known mortgage backed securities investors, is to move from Artesia Banking Corp to Fortis Bank on January 22. The hire will bring Fortis Bank's ABS/MBS team, headed by Stefaan De Doncker, to five. Martinez will be buying and trading both ABS and MBS. The unit, which is part of the credit spread group managed by Ralf Bauer, is increasing its activity, both in investing for the bank's balance sheet and in buying assets to be funded in Fortis's asset backed commercial paper conduit, Scaldis Capital Ltd.

Munchener Hypothekenbank (Munchener Hypo) has signed a euro10 billion ($9.37 billion) Euro-MTN facility via Deutsche Bank and DG Bank. Two private trades have already been issued off the programme. The first, a euro100 million one-year fixed-rate note was lead managed by CDC Marches. And UBS Warburg lead managed a euro100 million FRN. But the issuer is not ready to issue a large public note involving all its dealers. Richard Leib, head of treasury at Munchener Hypo, says: "We may do one if levels become more attractive." Leib explains why the programme was set up: "We saw some international investors coming to us, but our documentation didn't fit their requirements. We're a more domestic-oriented bank, so the legal process was not easy, but we are happy now we have the documentation set up." Munchener Hypo will be restricted in what it can issue. Leib explains: "We also have to take care of what we are allowed to do under German mortgage law. We're not as flexible as commercial banks. For example we are not allowed to take any FX exposure or any equity risk. All our currencies have to be swapped back to euro." The dealer panel is ABN Amro, Barclays Capital, CDC Marches, Commerzbank, Dresdner Bank, GZ-Bank, HypoVereinsbank, JP Morgan, Salomon Smith Barney, UBS Warburg, WestLB, WGZ-Bank and the arrangers.

Denmark Despite poor market conditions, Danionics, the Denmark-based battery manufacturer, is due to be the first listing of the year on the Copenhagen Stock Exchange. The company's management is confident the Dkr496m-Dkr620m (Eu66m-Eu83m) IPO will go ahead. The issue, including a greenshoe of 400,000 shares, will constitute 3.1m shares, of which 2.1m are new.

* Kommunalbanken AS Rating: Aaa/AAA

Pfandbrief Bank International has made its first trade of the year: a Sfr10 million ($6.08 million) three-year note that pays interest of Sfr Libor-flat quarterly. It is the Luxembourg-based bank's sixth trade off its euro7.5 billion ($7.11 billion) Euro-MTN programme, and takes its outstandings to $947.98 million. Eight other Swiss franc trades have been done this year, including a six-year Sfr1 billion trade from the Republic of Italy. Credit Lyonnais, Earls Four, Akademiska Hus, Bank Austria, Bayerische Landesbank and Vorarlberger Landes- und Hypothekenbank have all been involved in smaller Swiss franc trades ranging from one to 12 years in maturity. Martin Schulte, head of treasury at Pfandbrief Bank, says: "With structures going out of fashion last year it looked like the rapid growth of the MTN market was coming to an end. But we will establish our name with vanilla issuance first, and spreads are starting to tighten so this year should be quite interesting."